Centre approves Unified Pension Scheme, claims ‘benefit 23 lakh employees’
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New Delhi: The Centre on Saturday approved the Unified Pension Scheme (UPS) with the Union Minister Ashwini Vaishnaw claiming that ‘This scheme will benefit 23 lakh central government employees,’ News18 reported.
The scheme reportedly aims to provide assured pension, family pension and assured minimum pension and more important the announcement comes ahead of assembly elections in one state and a Union Territory this year.
“Today the Union Cabinet has approved Unified Pension Scheme (UPS) for government employees providing for the assured pension…50% assured pension is the first pillar of the scheme…second pillar will be assured family pension…About 23 lakh employees of the central government would benefit from the Unified Pension Scheme (UPS)…There will be an option for the employees to opt between NPS and UPS…” Ashwini Vaishnaw was quoted as saying.
It is reported that the central government employees can choose between the National Pension Scheme (NPS) and join the Unified Pension Scheme just as the state governments can also go for this new UPS module.
The Unified Pension Scheme will be implemented from April 1, 2025 requiring the cost of Rs 6250 crore for the scheme in the first year, according to the report.
It is to be noted that UPS will apply to all those retired under the NPS from 2004.
PM Modi met with Joint Consultative Machinery for Central Government employees and later said the Unified Pension Scheme ensures ‘dignity and financial security for government employees, aligning with our commitment to their well-being and a secure future’.
Approved by the union cabinet, the UPS aims to give assured pension, family pension and assured minimum pension to government employees.
It is reported that Assured Pension scheme will give as pension the fifty percent of the average basic salary for the last 1`2 months before the retirement of the employee who completes a minimum of 25 years in service.
‘It will be proportionate for a shorter service period up to a minimum of 10 years of service,’ NDTV reported.
However, Assured Family Pension will ensure the family get 60 percent of the last-drawn amount by the pensioner following the person’s death.
Assured Minimum Pension assures ₹ 10,000 per month after retirement for government employees after minimum 10 years of service.
However, under the Old Pension Scheme (OPS) retired employees received 50 percent of their last salary as monthly pension, which will keep increasing with the hike in the Dearness Allowance (DA) rates.
